Monday, January 26, 2009

Why class action suits are a waste of time

Florida driver's license settlement: $2.9M for lawyers, $1 for you

Facing a $3.5 billion deficit next year, Florida desperately needs all the money it can get. But millions more will disappear because the state has settled a lawsuit that affects millions of motorists.

The Legislature will spend $10.4 million to settle a class-action lawsuit over allegations that the state illegally sold drivers' personal information to marketing firms over a four-year period in violation of a federal law barring the practice. The state made $27 million each year on the deal, according to the lawsuit.

The settlement to drivers? $1.

The four South Florida motorists who sued will get $3,000 each, and five law firms that pursued the case for more than six years will divide $2.85 million in legal fees, which is separate from credits paid to consumers.

Looks like the state is making a nice profit of $98 million from breaking the law.

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